Is Marqeta, Inc. (NASDAQ:MQ) the Best Small-Cap Stock to Buy Now?

Marqeta, Inc. (NASDAQ:MQ), a global modern card issuing platform, has been making waves in the fintech industry with its impressive growth and innovative solutions. As of February 26, 2025, Marqeta reported strong financial results for the fourth quarter and full year ended December 31, 2024. The company's Total Processing Volume (TPV) grew by 29% year-over-year to $80 billion, while Gross Profit increased by 18% to $98 million. Marqeta's Net Revenue also grew by 14% to $136 million, and Adjusted EBITDA margin improved to 9%. The company's full-year TPV reached $291 billion, representing a 31% increase from the previous year.

Marqeta's growth can be attributed to several key factors, including its expansion into new markets and customer segments, innovative product offerings, strong partnerships, and operational efficiency. The company's acquisition of TransactPay and partnership with American Express have further strengthened its competitive position and growth prospects. Marqeta's acquisition of TransactPay provides BIN sponsorship and card issuance services in the United Kingdom and European Economic Area, while its partnership with American Express offers customers access to the American Express network, in addition to existing networks like Visa and Mastercard.

Marqeta's strong financial performance and growth prospects have caught the attention of analysts, with the average rating for the stock being a "Hold." The 12-month stock price forecast is $5.5, which represents a 31.58% increase from the latest price of $4.18. Despite the positive outlook, Marqeta faces potential challenges, such as competition from established players and regulatory risks. However, the company's innovative platform, strong partnerships, and focus on operational efficiency position it well to capitalize on the growing demand for embedded finance and modern card issuing solutions.

In conclusion, Marqeta, Inc. (NASDAQ:MQ) is a strong contender for investors seeking exposure to the growing fintech and embedded finance sectors. The company's impressive growth, innovative platform, and strategic partnerships make it an attractive investment opportunity. While there are potential challenges and risks to consider, Marqeta's focus on innovation, operational efficiency, and market expansion positions it well for long-term success. As such, Marqeta is a compelling choice for investors looking to buy a small-cap stock with significant growth potential.